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US buyout firms Blackstone Group and Kohlberg Kravis Roberts have suffered large paper losses on their investments in India amid the poor economic environment.

According to a report by Reuters, shares in Nagarjuna Construction have dropped 71% since Blackstone invested $150m (€117m) in August 2007 while Garment maker Gokaldas Exports has fallen 71% since the same month when Blackstone invested $165m.

Blackstone’s India head Akhil Gupta told the news agency that short-term capital volatility did not affect the firm’s investment thesis and did not impact the firm’s commitment to an investee company. He added the firm was in the early stages of its investment cycle.

About three years ago KKR paid $900m for a majority stake in the Indian software business of Flextronics International, which has since suffered an 80% drop in its share price.